People looking for businesses for sale could do well to keep a close eye on the hotel sector as the industry is expected to experience further consolidation in the coming months.
Reports suggest that three and four-star properties are most likely to undergo turmoil as lenders look to move into the next stage of action regarding over-geared groups. We've already seen the beginnings of this with the De Vere Group selling its non-core businesses and revamping its Village Hotels chain in advance of a potential business sale further down the line.
The Principal-Hayley group has also been put up for sale with a price tag of £500 million. It is thought likely that a private equity group will seek to acquire the hotel chain in order to use it as a consolidation vehicle.
Q Hotels is also putting some of its smaller hotels on the market as it considers refinancing in the near future, while the heavily-indebted Jury's Inns is set to be sold to a private equity banker.
Russell Kett, chairman of HVS London, global hotel valuation and consultation business, explained that there is likely to be yet more businesses for sale in the hotel sector in the near future. “The banks are now confident enough in the market to consider a sale likely, and are putting groups on the market that other operators and investors are likely to looks at,” he added.
The sector is undeniably tricky to operate in at the moment. Pressed for cash, many customers are looking to trade down, either overcrowding the middle sector or skipping it out all together in the search for a bargain.
While these pressures are undeniable, they are making for an exciting and competitive market for those that have the means to gain a place in the hotel market. Mr Kett concluded by warning investors that the investment and the time required to make some significant gains in the sector are “significant” and urged buyers to accept that they will need to extend their horizons if they want to get involved. 
Bring to the market this leasehold specialist car sales and servicing facility located in Horncastle, Lincolnshire. The trade was established as a limited company in 2005.
LEASEHOLD
The company is an online vehicle purchasing platform, providing a fast, hassle-free car-selling service for the end user. A competitor to the likes of webuyanycar.com and Motorway, the company is a well-established online vehicle purchasing platform...
Bringing to the market this denim and casual wear retailer, boating a user friendly comprehensive online presence.
Please choose your settings for this site below. For more information please read our Cookie Policy
These cookies are necessary for our website to function properly and provide you with access to all features.
These are analytics cookies that help us to improve the way our website works.
These are used to improve the functional performance of the website and make it easier for you to use.